Some people need to work after retiring from their career.
Retirement does not look the same for everybody.
Expenses do not disappear once you stop working.
Bills need to be paid.
Food needs to be purchased.
Life goes on.
A mixture of Social Security, retirement savings accounts, and investment accounts become your income when you no longer work.
What if it is not enough?
Can you continue working?
Should you continue working?
According to a recent New Hampshire Register article titled “Returning to work after you retire,” the answer depends on your specific circumstances.
Others are simply victims of downsizing and are unable to find a comparable job.
What if you are able to continue working?
This depends on how much you earn, how old you are, and whether you have claimed Social Security benefits.
If you are younger than full retirement age and have claimed benefits but make more than a certain amount, the IRS will deduct money from your Social Security benefits.
What is the limit?
In 2019, the threshold is $17,640.
If you earn more than this, then you will lose $1 for every $2 you earn over the limit.
The threshold changes every year.
What happens if you reach full retirement age?
The year you reach full retirement age threshold rises to $46,920 in 2019.
The amount deducted also changes to $1 for every $3 over the limit.
After full retirement age, there is no longer a threshold on how much you can earn.
When it comes to working in retirement, being strategic is beneficial.
Consider your finances, but also consider the type of work you would like.
Retirement may allow you opportunities to explore new careers, help others through consulting or by serving your community.
Whatever you choose, a little forethought does not hurt.
Reference: New Haven Register (July 7, 2019) “Returning to work after you retire”